Revolving Loan Fund Program Income Guidelines

Introduction

The Colorado Department of Local Affairs (DOLA), Division of Housing (DOH), is responsible for the oversight of Program Income derived from Community Development Block Grants (CDBG), Home Investment Partnerships Program (HOME), and Housing Development Grant (HDG) funds.

Program Income is any income received by a Subrecipient that was generated by the use of CDBG or HOME funds. A Subrecipient for CDBG is a public or private nonprofit agency, authority or organization, or an entity described in 24 CFR 570.204(c), receiving CDBG funds from the recipient to undertake activities eligible for such assistance under Subpart C of the regulations. A Subrecipient for HOME funds is a public agency or nonprofit selected by the participating jurisdiction to administer all or a portion of the participating jurisdiction’s HOME funds. For the purposes of this document, a Subrecipient is any entity administering a program that generates Program Income.

This document provides guidance on the use and management of Program Income generated by Revolving Loan Funds (RLF) through CDBG-, HOME-, and HDG-funded Down Payment Assistance (DPA) and Mortgage Assistance Programs, other programs to assist low-income families to become homeowners (e.g. land trusts), Single Family Owner-Occupied and Self-Help Rehabilitation (Rehab) Programs (collectively, RLF Programs). These Guidelines do not address other circumstances that may generate Program Income, such as when a grantee receives proceeds from a grant of CDBG or HOME funds, which they loaned to another entity to support development of affordable housing.

These Program Income Guidelines may be modified from time to time based on changes to DOH policy, statute, HUD regulations, and guidance. DOH relied on the following sources in determining these Guidelines:

1. The Housing and Community Development Act of 1974, as amended;
2. 24 CFR Part 570; (State Program Income 570.489(e) and (f));
3. CPD Notice 04-11;
4. 24 CFR 92 Part 503 and 24 CFR 92.2;
5. The DOH Consolidated Plan, as amended from year to year; and
6. Policy memorandums issued by DOH.

Sources of Program Income

General Guidelines

Tracking and Reporting

Recapture

Please contact your DOH Asset Manager with any questions about these Guidelines.